You're going to see those things, with the mortgages being foreclosed, on the people who no longer have any income, whose stock options are worthless and whose salaries have just vanished, and whose companies have just gone.

First, this argument ignores that default rates and foreclosure rates are far from the same, and it is only when loans are foreclosed that their default status becomes visible in data.

Finally, the right to foreclose the mortgage - a right inherent in all mortgages - is available to the bank.